ECONOMICS Assignment 1

All individuals, even Bill Gates, must select among alternative goods because of - -scarcity -The central problem all individuals face is - -scarcity of resources -Economics is the study of - -how individuals and nations deal with the problem of scarcity -Fill in the blank: Economics is the study of ________ and its ________. - -choice; unintended consequences -A resource is something that - -is used to produce goods and services -Resources are divided into the following broad categories: - -capital, natural resources, labor, and entrepreneurial ability -When economists refer to capital, they might mean - -human skills used in production -"Natural resources" refers to - -all of the answers are correct -In economics, capital is defined as - -human creations used in the production process -Goods and services are exchanged in - -product markets -Lands are exchanged in - -resource markets -Households - -own and sell resources